SINGAPORE - Perennial Real Estate Holdings saw third-quarter earnings plunge by 91.1 per cent despite a rise in revenue.
The property and healthcare group on Tuesday posted a net profit of $425 million for the three months ended Sept 30, down sharply from the $4.8 million in the same period a year ago.
Revenue jumped 53.2 per cent to $35.1 million, driven largely by the strata sales of office space at TripleOne Somerset, though partly offset by lower rental revenue from the same development as expiring leases were not renewed in preparation for the asset enhancement works and strata sales.
No dividends were declared for the period.
Perennial said the drop in profit was mainly attributable to higher interest expenses as well as the absence of a one-off investment income.
"Interest expenses rose as more loans were taken to finance new investments, some of which have started to provide new income streams to the group."
Earnings per share came in at 0.03 cents, down from 0.29 cents previously. Net asset value per share stood at $1.57 as at Sept 30, lower than the $1.688 as at Dec 31 last year.
Perennial shares finished 1.5 cents or 1.8 per cent lower at 82.5 cents today, before the results were released.